If S = -200 + 0.2Y and I = 100, then the equilibrium level of income is
A. 1,200.
B. 1,500.
C. 3,000.
D. 4,000.
Answer: B
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If a firm decreases production, then its:
A. variable costs decrease. B. fixed costs decrease. C. total costs stay the same. D. None of these is true.
When a profit-maximizing firm in a competitive market has zero economic profit, accounting profit
a. is negative. b. is at least zero. c. is also zero. d. could be positive, negative or zero.
Refer to Figure 2.3. At a price of $13 per CD, there would be:
A. excess supply of 30 thousand CDs.
B. excess demand of 10 thousand CDs.
C. excess supply of 60 thousand CDs.
D. excess demand of 60 thousand CDs.
Game theory is the study of decision making in situations where strategic interaction occurs between rivals.
Answer the following statement true (T) or false (F)